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POULTRY MARKETS IN A GLOBAL PERSPECTIVE Dr PIET SIMONS Past President World’s Poultry Science Association (WPSA) Ambassador Dutch Poultry Centre Round Table Discussion February 3, 2010 Global poultry meat Global egg production Main poultry meat and egg producers (various countries) Poultry meat and egg consumption Cost-price poultry meat and eggs in various countries Global poultry market Driving forces Barriers World trade poultry products New poultry products in the future X Million tonnes World poultry meat production 2007 100 90 80 70 60 50 40 30 20 10 0 Poultry Source: FAO Chicken Turkey Duck Goose and guinea fowl World poultry meat production 90 80 X Million MT 70 60 50 40 30 20 10 0 1970 1980 1990 2000 2004 Year Source: FAO 2005 2006 2007 Poultry meat production in the various continents over the years 30000000 25000000 1996 20000000 1997 1998 1999 2000 2001 15000000 2002 2003 2004 2005 10000000 2006 5000000 0 AFRICA ASIA EUROPE LATIN AMERICA* NORTHERN AMERICA OCEANIA Leading countries in poultry meat production 1970 Country 2007 Production Share (000 tonnes (%) USA 4,645 30.8 USSR 1,071 China Production Share (000 tonnes) (%) USA 19,481 22.4 7.1 China 16,034 18.5 971 6.4 EU 25 10,392 12.0 France 637 4.2 Brazil 8,908 10.3 World 15,101 100 World 86,800 100 Source: FAO Country Development of global meat production (data in million ton, source FAO) Year Beef and veal Pig meat Poultry meat 1970 38 36 15 1975 44 41 19 1980 46 53 26 1985 49 60 31 1990 53 70 41 1995 54 80 55 2000 57 90 69 2007 65 115 87 Increase (%) 71 219 480 Source: FAPRI (forecast) R wa n a da ia hi n In d C 7) pa n (2 Ja s a ia us s EU R au rit iu M ge nt in Ar il SA az Br U kg/person/year Chicken meat consumption 2008 50 45 40 35 30 25 20 15 10 5 0 World poultry production Growth forecast Year 1995 Poultry meat (Million tonnes) 56 2000 74 2015 110 2030 140 Brazil: number 1 exporter in broiler meat Source: Nutreco/Gira Advantages in Brazil (opportunities India) Good climate: low cost housing Low cost of labour Inland feed ingredients (corn, soybeans) Combined with: Integrated production (contract) Big companies with good management Modern equipment Innovative and market-driven World table egg production 70 60 X Million tonnes 50 40 30 20 10 0 1960 1970 1980 1990 2000 Year FAO Database 2004 2005 2006 2008 (exp) Egg production in the various continents over the years 40000000 35000000 30000000 1996 1997 25000000 1998 1999 2000 2001 20000000 2002 2003 2004 15000000 2005 2006 10000000 5000000 0 AFRICA ASIA EUROPE LATIN AMERICA* NORTHERN AMERICA OCEANIA The five leading countries in hen egg production 1970 Country 2007 Production Share (000 tonnes) (%) USA 4,053 20.7 USSR 2,248 Japan Production Share (000 tonnes) (%) China 25,846 41.3 11.5 USA 5,308 8.5 1,766 9.0 India 2,670 4.3 China 1,533 7.8 Japan 2,525 4.0 Germany 1,162 5.9 Russia 2,093 3.3 19,540 100.0 World 62,572 100.0 World Source: FAO Country World egg consumption 10 9 8 kg/person/year 7 6 5 4 3 2 1 0 96 97 98 99 8.0 kg eggs ≈ 130 eggs Source: FAO 00 01 02 03 04 05 06 07 DR on g C ad e ng l Ba Source: International Egg Commission, annual review o sh ia In d il Br az a Li by L N a ge nt in Ar SA U ia pa n us s R C Ja a 400 350 300 250 200 150 100 50 0 hi n numbers of eggs/person Egg consumption 2006 in selected countries Production cost Eggs in 2006, Farm level (Ect/kg) 80 70 60 50 cent per kg general 40 housing 38 labour 37 other 30 feed hen 29 34 25 28 12 10 9 USA BR INDIA 20 10 16 15 6 10- EU PL UKR P. Van Horne, WUR, The Netherlands Main trade flows in hen eggs Main trade flow (> 100.000 ton): Netherlands Germany Malaysia Singapore Minor trade flows Poland Germany USA Hongkong India UAE Source: ISPA Global poultry market Driving forces Population growth and demographics Economic prosperity Relative cost/price advantage Health and nutrition Consumer friendly products Fast-food chains Driving livestock revolution China India Africa 1.3 billion 1.1 billion 1.0 billion 2009 (India): Chicken meat consumption 2009 (Africa, estimated) Egg consumption 2.4 kg/year 43 eggs/year per cap Global poultry market Barriers Trade barriers (high tariffs feedstuffs) Domestic monopolies Bilateral agreements Standards (sanitation, hygiene, disease, environment, GMO, residues, animal welfare, increase price feedstuffs, money crisis, etc.). World poultry production Future challenges Continued sophistication of the industry (food safety, taste, nutritional value) Shifting from “production” to “value-adding” and marketing Meeting consumer preferences/tastes Competition for consumer expenditure for other goods and services Innovation should meet health, ethics and environment (global warming, manure pollution) Science-based development Future (in practice) Poultry meat More further processed products Eggs In medical science (purification proteins) To deliver antibodies to prevent disease Functional food (enriched eggs) Home replacement meals Synopsis Poultry meat and egg production and consumption are continuously increasing and have a broad acceptability Nutrition value of poultry products is high Food security and safety must be assured Free market and trade are important Poultry diseases, environment, energy, product quality and animal welfare need attention Thanks for your attention [email protected]